Bangladesh establishes wage review board amid garment worker demonstrations

Despite the Sunday announcement, demonstrations continued near Dhaka, with thousands of workers advocating for increased compensation. Police responded to the protests with tear gas and sound grenades.

The garment industry is a critical component of Bangladesh’s economy, providing employment for millions and contributing significantly to the nation’s export revenue.

Workers are seeking a minimum monthly wage of 30,000 taka (approximately $242), a substantial increase from the current rate of 12,500 taka ($101). They cite the escalating costs of essential goods like food, housing, transportation, and healthcare as factors diminishing their financial stability.

The newly formed six-member board will comprise representatives from the government, workers, and factory owners. Its primary responsibility is to determine a revised minimum wage.

“The issue of forming the wage board has been resolved. There will be no more problems now,” stated Ministry of Labour and Employment adviser M Sakhawat Hossain Chowdhury. He further urged workers to return to their jobs and maintain productivity.

Labour and Employment Minister Ariful Haque Chowdhury cautioned that extended factory closures and production delays could negatively affect export shipments and payments from international buyers, posing challenges for both manufacturers and workers.

The protests, which began Saturday, led approximately 30 garment factories near Dhaka to temporarily close, as confirmed by Mohammad Mominul Islam Bhuiyan, superintendent of the Ashulia Industrial Police.

Clashes in Ashulia resulted in injuries to several individuals, including police officers, according to police reports.

Bangladesh’s garment industry ranks as the world’s largest, second only to China’s, accounting for roughly 10 percent of the nation’s gross domestic product.

Manufacturers have indicated that the sector is grappling with increasing production costs, intermittent gas and electricity shortages, and instability in energy markets related to the ongoing conflict in the Middle East involving the United States, Israel, and Iran.